Nuclear power plant a possibility for Hartlepool
Hartlepool has been chosen as one of eight sites where a new nuclear power plant could be built.
The location, next to the existing station, has been labelled suitable.
The plans will have to go through parliament and the planning process, but ministers hope they will be up and running by 2025.
James Ramsbotham, from the North East Chamber of Commerce, said: "There are opportunities for companies and it's good news for those already employed."
Iris Ryder from the Green Party in Hartlepool said: "This first power station was built on a site that was totally unsuitable, to build a second one is just madness.
"At the moment we've got a multi-million pound development on the seafront to try and protect our coastline, and yet they are wanting to put a nuclear reactor further along the same coastline.
"This is not a safe way of going on."
Energy Minister Charles Hendry said: "There is a strong legacy of people who have worked in the industry.
"There's a real thirst to bring forward this investment."
Other suitable places include sites in Essex, Lancashire, Somerset, Gloucestershire, Cumbria, Suffolk and the Isle of Anglesey.